Theoretical and Applied Economics (Aug 2007)
Performance in Service Marketing from Philosophy to Customer Relationship Management
Abstract
The contribution of services to the development of every national economy is in the progress,they becoming the major contributor to the gross national product of most countries. In their turn, thecustomers become more demanding and powerful in their relationship with service providers. They askfor more and new relationship. The appropriate new marketing, known as Relationship Marketing, looksto engage the customer interactively in the many steps of creating value which is later shared betweenservice provider and customer. This requires to focus on long-term customer relationship. In order toestablish and maintain long-term relationship, the relationship marketing should understand customerexpectations, know the customers, evaluate services process, obtain a proper service quality and adequatelymanage customers’ relationships. The service customer’s is placed on an expectation range to afive dimension scale and have two levels which may be analyzed into a model of service. A stimulus forrelationship marketing performance may be the quality of service. The objective and subjective quality ofservice is essential for the service customer relationship management. In order to reach the goal ofretaining actual customers, service companies should be prepared to spot customers who leave and thenanalyze and act on information they provide. Managers should make sure the entire organization understandthe importance of keeping customers and encourage employees to pursue zero defections by tryingincentives, planning, and budgeting to defections targets. Most important, managers use defections as avehicle for continuously improving the quality and value of the service they provide to customer.
